Quench Fall/Winter '21

Beverages Are Moving Up in the World

The beverage category is taking on new importance in the American diet, moving well beyond liquid refreshment.  Humans do need water to live, so it can be expected that beverages are always going to be in demand and consuming them will be part of our daily consumption routine.  I think for many, beverages were thought of as something that should be an accompaniment to a meal or refresh us when we are feeling thirsty.  But, many suppliers have elevated the beverage into an actual meal replacement with the added benefit that they can be satisfying, portable, and easy to consume on the go, which plays to the consumer trend toward more convenience.

The category can add another feather to its cap because beverages are also riding the trend toward Americans demanding foods that promote a more nutritious diet. The rise of the functional beverage is in direct response to beverage suppliers realizing that beverages can also be a fantastic delivery mechanism for essential vitamins and minerals. They are adding to the value proposition of their beverage products by simultaneously satisfying consumer demand for a delicious and thirst-quenching beverage, while also bringing obvious health benefits to the human body.  It’s a winning proposition that has encouraged additional beverage development in the category.

Whenever you observe an important shift in a category like this, it does deserve some notice and invites a closer look at present assortments to see if the new beverage types are adequately represented.  Merchandising also becomes an important topic of discussion because some of the new beverages might belong in a totally different part of the store.  If you consider plant-based “chicken” nuggets, for example, do they belong in the vegetable area or in the refrigerator case with the traditional chicken nuggets?  The same sort of thought experiment may be warranted as new products find their way into the store and beverages move up in the world.